They had to bring down the freight costs or be priced out of the market.

Cody B. Industries is a manufacturer of low cost pet enclosures. To hold down shipping costs, they ship them knocked down flat, in cartons, on pallets. But when shipping from California, and freight charges were added to the price of their product, they couldn’t compete with others located in the eastern half of the United States.

They were close to landing a new account with 40 stores spread throughout 5 states. The initial order was for one pallet to each store. They had a pretty good discount with a common carrier, but to ship one pallet to each store averaged $315 each. They had to bring down the freight costs or be priced out of the market.

Our solution was to provide them with a pool distribution. By shipping 2 full loads from CA, to our distribution center in OH, then transferring each pallet onto a local truck for final delivery, we could bring their cost down to $175 per single pallet delivery.

As an added benefit there was actually room on 2 trailers for 48 pallets. You might say, 8 pallets were moved to OH for free. There they could be held in reserve for next day delivery on re-orders.

The savings in freight represented the profit on this order. Pool distribution enabled them to sell to more customers and compete in distant markets.